Is Buffett Hoarding Cash and Rarely Selling Companies — A Sign of Deep Disappointment in U.S. Economy?

TradingKey — Amid lingering discussions about Berkshire Hathaway’s record trillion cash reserves fueling a shortage of quality assets, the conglomerate led by Warren Buffett is reportedly making a rare move to sell a subsidiary — a stark departure from its long-standing policy of almost never selling companies.

According to The Wall Street Journal, the largest real estate brokerage in the U.S. by transaction volume, is in talks to acquire HomeServices of America, Berkshire’s real estate arm and the nation’s fourth-largest residential brokerage. The deal is estimated to value HomeServices in the multi-billion-dollar range.

Buffett has repeatedly emphasized that Berkshire "almost never exits subsidiaries" unless they face persistent operational challenges. The last major divestiture occurred in 2020 when Berkshire sold its newspaper group for $140 million.

Market analysts speculate that this rare sale reflects growing strains in the U.S. real estate sector. Under the dual pressures of high inflation and elevated interest rates, U.S. home sales in 2024 have slumped to their lowest levels since 1995 for the second consecutive year.

The move coincides with Buffett’s unprecedented cash accumulation over the past two years and his reluctance to invest in U.S. equities, further fueling concerns that the "Oracle of Omaha" harbors deepening pessimism about both the stock market and the broader U.S. economy.